OCD Permitting

PRELIMINARY DOCKET: Examiner Hearing for December 19, 2024

Applications for hearing shall be filed at least thirty (30) days in advance of the hearing date. A party who intends to present evidence shall file a pre-hearing statement no later than the close of business on the Thursday prior to the hearing date and serve a copy on the other parties, if any. The hearing examiner will dismiss the application if the applicant does not file and serve a pre-hearing statement as specified above. A party desiring to use projection equipment at the hearing shall contact Florene Davidson, OCD Clerk, no later than seven (7) business days prior to the hearing.

NOTICE: The hearing examiner may call the following cases in any order in his or her discretion.

Case No. Description
1. 24849 Application of Avant Operating, LLC for approval of a non-standard spacing unit and compulsory pooling, Lea County, New Mexico. Applicant seeks an order from the Division approving a non-standard spacing unit and pooling all uncommitted interests within a 1280-acre, more or less, Bone Spring horizontal spacing unit comprised of Sections 14 and 23, Township 19 South, Range 33 East, N.M.P.M., Lea County, New Mexico. This spacing unit will be dedicated to the following wells: the Sapphire 14 Federal Com #301H, Sapphire 14 Federal Com #302H, Sapphire 14 Federal Com #501H, Sapphire 14 Federal Com #502H, Sapphire 14 Federal Com #601H, and Sapphire 14 Federal Com #602H wells with proposed surface hole locations in the NW/4 NW/4 (Unit D) of Section 14 and proposed bottom hole locations in the SW/4 SW/4 (Unit M) of Section 23; Sapphire 14 Federal Com #303H and Sapphire 14 Federal Com #603H wells with proposed first take points in the NE/4 NW/4 (Unit C) of Section 14 and proposed last take points in the SE/4 SW/4 (Unit N) of Section 23; Sapphire 14 Federal Com #513H well with a proposed surface hole location in the NW/4 NW/4 (Unit D) of Section 14 and a proposed bottom hole location in the SE/4 SW/4 (Unit N) of Section 23; Sapphire 14 Federal Com #304H, and Sapphire 14 Federal Com #604H wells with proposed surface hole locations in the NE/4 NE/4 (Unit A) of Section 14 and proposed bottom hole locations in the SW/4 SE/4 (Unit O) of Section 23; Sapphire 14 Federal Com #514H well with a proposed surface hole location in the NW/4 NE/4 (Unit B) of Section 14 and a proposed bottom hole location in the SW/4 SE/4 (Unit O) of Section 23; Sapphire 14 Federal Com #505H, and Sapphire 14 Federal Com #506H wells with proposed surface hole locations in the NW/4 NE/4 (Unit B) of Section 14 and proposed bottom hole locations in the SE/4 SE/4 (Unit P) of Section 23; and the Sapphire 14 Federal Com #305H, Sapphire 14 Federal Com #306H, Sapphire 14 Federal Com #605H, and Sapphire 14 Federal Com #606H wells with proposed surface hole locations in the NE/4 NE/4 (Unit A) of Section 14 and proposed bottom hole locations in the SE/4 SE/4 (Unit P) of Section 23. The wells will be drilled at orthodox locations. The pool and pool code for Sections 14 and 23 is the Gem; Bone Spring, East Pool (Code 27230), which is an oil pool. Also to be considered will be the cost of drilling and completing said wells, the allocation of these costs as well as the actual operating costs and charges for supervision, designation of Avant Operating, LLC as operator of the wells, and a 200% charge for risk involved in drilling said wells. Said area is located approximately 23 miles west of Hobbs, New Mexico.
2. 24698 Unresolved alleged violations of 19.15.25.8, 19.15.5.9(A), 19.15.8.9 and 19.15.7.24 NMAC
3. 24710 Application of Civitas Permian Operating, LLC for Compulsory Pooling, Lea County, New Mexico. Applicant seeks an order from the Division pooling all uncommitted interests in the Bone Spring formation underlying a standard 640-acre, more or less, horizontal spacing unit comprised of the E/2 of Sections 4 and 9, Township 24 South, Range 34 East, Lea County, New Mexico. The proposed horizontal spacing unit will be dedicated to The Contest Fed Com 108H, The Contest Fed Com 128H, The Contest Fed Com 144H, and The Contest Fed Com 154H to be horizontally drilled with first take points in the SE/4SE/4 (Unit P) of Section 9 and last take points in the NE/4SE/4 (Unit A) of Section 4; and The Contest Fed Com 116H, The Contest Fed Com 123H, The Contest Fed Com 126H, The Contest Fed Com 143H, and The Contest Fed Com 153H wells to be horizontally drilled with first take points in the SW/4SE/4 (Unit O) of Section 9 and last take points in the NW/4NE/4 (Unit B) of Section 4. The producing area for the wells is expected to be orthodox. The completed intervals for The Contest Fed Com 116H is expected to be less than 330 feet from the adjoining tracts thereby allowing for the inclusion of the proximity tracts within the Unit. Also to be considered will be the cost of drilling and completing said wells, the allocation of these costs as well as the actual operating costs and charges for supervision, designation of Civitas as operator of the wells, and a 200% charge for risk involved in drilling said wells. Said area is located approximately 18 miles northwest of Jal, New Mexico.
4. 24711 Application of Civitas Permian Operating, LLC for Compulsory Pooling, Lea County, New Mexico. Applicant seeks an order from the Division pooling all uncommitted interests in the Wolfcamp formation underlying a standard 640-acre, more or less, horizontal spacing unit comprised of the E/2 of Sections 4 and 9, Township 24 South, Range 34 East, Lea County, New Mexico. The proposed horizontal spacing unit will be dedicated to The Contest Fed Com 208H and The Contest Fed Com 218H to be horizontally drilled with first take points in the SE/4SE/4 (Unit P) of Section 9 and last take points in the NE/4SE/4 (Unit A) of Section 4; and The Contest Fed Com 203H and The Contest Fed Com 216H wells to be horizontally drilled with first take points in the SW/4SE/4 (Unit O) of Section 9 and last take points in the NW/4NE/4 (Unit B) of Section 4. The producing area for the wells is expected to be orthodox. The completed intervals for The Contest Fed Com 216H is expected to be less than 330 feet from the adjoining tracts thereby allowing for the inclusion of the proximity tracts within the Unit. Also to be considered will be the cost of drilling and completing said wells, the allocation of these costs and the actual operating costs and charges for supervision, designation of Civitas as operator of the wells, and a 200% charge for risk involved in drilling said wells. Said area is located approximately 18 miles northwest of Jal, New Mexico.
5. 24850 Amended Application of Tap Rock Operating, LLC for Compulsory Pooling, Eddy County, New Mexico. Applicant in the above-styled cause seeks an order pooling a standard 1920 acre, more or less, horizontal well spacing unit in the Wolfcamp formation comprised of all of all of Sections 2, 3 and 4, Township 25 South, Range 25 East NMPM, Eddy County, New Mexico initially dedicated to the proposed Beer 30 Fed Com #202H, Beer 30 Fed Com #204H, Beer 30 Fed Com #211H, and the Beer 30 Fed Com #213H wells to be horizontally drilled as follows:
•    Beer 30 Fed Com #202H, which will be drilled from a surface hole location the SE/4 NE/4 of Section 2, Township 25 South, Range 25 East (Unit A) to a bottom hole located 5 Feet from the West Line in Section 4 and 1,650 Feet from the North Line in Section 4 (Unit E) Township 25 South, Range 25 East.
•    Beer 30 Fed Com #204H, which will be drilled from a surface hole location the SE/4 SE/4 of Section 2, Township 25 South, Range 25 East (Unit P) to a bottom hole located 5 Feet from the West Line in Section 4 and 990 Feet from the South Line in Section 4 (Unit M) Township 25 South, Range 25 East.
•    Beer 30 Fed Com #211H, which will be drilled from a surface hole location the SE/4 NE/4 of Section 2, Township 25 South, Range 25 East (Unit A) to a bottom hole located 5 Feet from the West Line in Section 4 and 330 Feet from the North Line in Section 4 (Unit D) Township 25 South, Range 25 East.
•    Beer 30 Fed Com #213H, which will be drilled from a surface hole location the SE/4 SE/4 of Section 2, Township 25 South, Range 25 East (Unit P) to a bottom hole located 5 Feet from the West Line in Section 4 and 2,360 Feet from the North Line in Section 4 (Unit L) Township 25 South, Range 25 East.
Also, to be considered will be the cost of drilling and completing the wells and the allocation of the cost thereof, actual operating costs and charges for supervision, designation of Tap Rock Operating, LLC as operator of the wells, and a 200% charge for risk involved in drilling said wells. The subject area is located approximately 1.5 miles east of Whites City, New Mexico.
6. 24872 Application of Avant Operating, LLC for approval of a non-standard spacing unit and compulsory pooling, Lea County, New Mexico. Applicant seeks an order from the Division approving a non-standard spacing unit and pooling all uncommitted interests within a 1262.72-acre, more or less, Wolfcamp horizontal spacing unit comprised of Sections 30 and 31, Township 18 South, Range 34 East, N.M.P.M., Lea County, New Mexico. This spacing unit will be dedicated to the following wells: the Speedmaster 30 Fed Com #006H well with a proposed surface hole location in the NE/4 NW/4 (Unit C) of Section 30 and a proposed bottom hole location in the SE/4 SW/4 (Unit N) of Section 31; Speedmaster 30 Fed Com #007H well with a proposed surface hole location in the NW/4 NW/4 (Unit D) of Section 30 and a proposed bottom hole location in the SW/4 SW/4 (Unit M) of Section 31; Speedmaster 30 Fed Com #008H well with a proposed surface hole location in the NE/4 NE/4 (Unit A) of Section 30 and a proposed bottom hole location in the SW/4 SE/4 (Unit O) of Section 31; and Speedmaster 30 Fed Com #009H well with a proposed surface hole location in the NE/4 NE/4 (Unit A) of Section 30 and a proposed bottom hole location in the SE/4 SE/4 (Unit P) of Section 31.The wells will be drilled at orthodox locations. Also to be considered will be the cost of drilling and completing said wells, the allocation of these costs as well as the actual operating costs and charges for supervision, designation of Avant Operating, LLC as operator of the wells, and a 200% charge for risk involved in drilling said wells. Said area is located approximately 23 miles west of Hobbs, New Mexico.
7. 24873 Application of Avant Operating, LLC for approval of a non-standard spacing unit, compulsory pooling, and, to the extent necessary, approval of an overlapping spacing unit Lea County, New Mexico. Applicant seeks an order from the Division approving a non-standard spacing unit and pooling all uncommitted interests within a 1262.72-acre, more or less, Bone Spring horizontal spacing unit comprised of Sections 30 and 31, Township 18 South, Range 34 East, N.M.P.M., Lea County, New Mexico. Avant also seeks, to the extent necessary, approval of an overlapping spacing unit. This spacing unit will be dedicated to the following wells: the Speedmaster 30 Fed Com #501H well with a proposed surface hole location in the NW/4 NW/4 (Unit D) of Section 30 and a proposed bottom hole location in the SW/4 SW/4 (Unit M) of Section 31; Speedmaster 30 Fed Com #301H and Speedmaster 30 Fed Com #601H wells with proposed first take points in the NW/4 NW/4 (Unit D) of Section 30 and proposed last take points in the SE/4 SW/4 (Unit N) of Section 31; Speedmaster 30 Fed Com #502H well with a proposed surface hole location in the NE/4 NW/4 (Unit C) of Section 30 and a proposed bottom hole location in the SE/4 SW/4 (Unit N) of Section 31; Speedmaster 30 Fed Com #302H and Speedmaster 30 Fed Com #602H wells with proposed first take points in the NW/4 NE/4 (Unit B) of Section 30 and proposed last take points in the SW/4 SE/4 (Unit O) of Section 31; Speedmaster 30 Fed Com #303H well with a proposed surface hole location in the NE/4 NE/4 (Unit A) of Section 30 and a proposed bottom hole location in the SW/4 SE/4 (Unit O) of Section 31; and Speedmaster 30 Fed Com #304H, Speedmaster 30 Fed Com #603H, and Speedmaster 30 Fed Com #604H wells with proposed surface hole locations in the NE/4 NE/4 (Unit A) of Section 30 and proposed bottom hole locations in the SE/4 SE/4 (Unit P) of Section 31.The wells will be drilled at orthodox locations. This proposed horizontal spacing unit will partially overlap with the following spacing units:
•    A 160-acre Bone Spring horizontal spacing unit comprised of the E/2 E/2 of Section 30, Township 18 South, Range 34 East, dedicated to Prima Exploration, Inc.’s EK 30 BS2 Federal Com #001H well (API 30-025-42701);
•    A 160-acre Bone Spring horizontal spacing unit comprised of the E/2 E/2 of Section 31, Township 18 South, Range 34 East, dedicated to Prima Exploration, Inc.’s EK 31 BS2 Federal Com #001H well (API 30-025-43884);
•    An 80-acre Bone Spring vertical spacing unit comprised of the W/2 SE/4 of Section 30, Township 18 South, Range 34 East, dedicated to Kaiser-Francis Oil Co.’s McElvain Federal #001H well (API 30-025-24757);
•    An 80-acre Bone Spring vertical spacing unit comprised of the W/2 SW/4 of Section 31, Township 18 South, Range 34 East, dedicated to Prima Exploration, Inc.’s McElvain Federal #010H well (API 30-025-39520);
•    A 160-acre Bone Spring horizontal spacing unit comprised of the W/2 E/2 of Section 30, Township 18 South, Range 34 East, dedicated to Prima Exploration, Inc.’s EK 30 BS2 Federal Com #002H well (API 30-025-43883); and
•    An 80-acre Bone Spring vertical spacing unit comprised of the N/2 SE/4 of Section 31, Township 18 South, Range 34 East, dedicated to Earthstone Operating, LLC’s Wapiti 31 Federal #001H well (API 30-025-35841).
Also to be considered will be the cost of drilling and completing said wells, the allocation of these costs as well as the actual operating costs and charges for supervision, designation of Avant Operating, LLC as operator of the wells, and a 200% charge for risk involved in drilling said wells. Said area is located approximately 23 miles west of Hobbs, New Mexico.
8. 24874 Application of Avant Operating, LLC for compulsory pooling, and, to the extent necessary, approval of an overlapping spacing unit Lea County, New Mexico. Applicant seeks an order from the Division pooling all uncommitted interests within a standard 640-acre, more or less, Bone Spring horizontal spacing unit comprising the N/2 of Sections 14 and 15, Township 18 South, Range 32 East, N.M.P.M., Lea County, New Mexico. This spacing unit will be dedicated to the Shinnery Oak 15 Fed Com #301H, Shinnery Oak 15 Fed Com #302H, Shinnery Oak 15 Fed Com #501H, Shinnery Oak 15 Fed Com #502H, Shinnery Oak 15 Fed Com #601H and Shinnery Oak 15 Fed Com #602H wells with proposed surface hole locations in the SW/4NW/4 (Unit E) of Section 15 and proposed last take points in the NE/4NE/4 (Unit A) of Section 14; and Shinnery Oak 15 Fed Com #303H, Shinnery Oak 15 Fed Com #503H, and Shinnery Oak 15 Fed Com #603H wells with proposed surface hole locations in the SW/4NW/4 (Unit E) of Section 15 and proposed last take points in the SE/4NE/4 (Unit H) of Section 14. The wells will be drilled at orthodox locations. Avant also seeks, to the extent necessary, approval of an overlapping spacing unit. This proposed horizontal spacing unit will partially overlap with the following spacing units:
•    A 160-acre Bone Spring horizontal spacing unit comprised of the N/2N/2 of Section 14, Township 18 South, Range 32 East, dedicated to RAYBAW Operating, LLC’s Shinnery 14 Federal #010H well (API 30-025-40072);
•    A 160-acre Bone Spring horizontal spacing unit comprised of the N/2N/2 of Section 15, Township 18 South, Range 32 East, dedicated to RAYBAW Operating, LLC’s West Shinnery 15 Federal #002H well (API 30-025-39956); and
•    A 160-acre Bone Spring horizontal spacing unit comprised of the N/2S/2 of Section 15, Township 18 South, Range 32 East, dedicated to Cimarex Energy Co. of Colorado’s West Shinnery 15 Federal #003H well (API 30-025-40066).
The completed intervals for the Shinnery Oak 15 Fed Com #302H, Shinnery Oak 15 Fed Com #502H, Shinnery Oak 15 Fed Com #602H wells are expected to be less than 330 feet from the adjoining tracts, thereby allowing for the inclusion of the proximity tracts within the proposed spacing unit. Also to be considered will be the cost of drilling and completing said wells, the allocation of these costs as well as the actual operating costs and charges for supervision, designation of Avant Operating, LLC as operator of the wells, and a 200% charge for risk involved in drilling said wells. Said area is located approximately 7 miles south of Maljamar, New Mexico.
9. 24908 Application of Marathon Oil Permian LLC for compulsory pooling, and, to the extent necessary, approval of an overlapping spacing unit, Eddy County, New Mexico.. Applicant seeks an order from the Division pooling all uncommitted mineral interests within a standard 640-acre, more or less, Wolfcamp horizontal spacing unit underlying the E/2 of Sections 26 and 35, Township 23 South, Range 27 East, NMPM, Eddy County, New Mexico. This spacing unit will target the Purple Sage Wolfcamp Gas Pool (Code 98220) and be dedicated to the Oso Bueno Federal Com 701H well to be horizontally drilled with a proposed first take point in the SE/4SE/4 (Unit P) of Section 35 to a bottom hole location in the NE/4NE/4 (Unit A) of Section 26; and the Oso Bueno Federal Com 702H well to be horizontally drilled with a proposed first take point in the SW/4SE/4 (Unit O) of Section 35 to a bottom hole location in the NW/4NE/4 (Unit B) of Section 26. The producing area for the wells is expected to be orthodox. Marathon also seeks, to the extent necessary, approval of an overlapping spacing unit. This proposed horizontal spacing unit will partially overlap with the following existing spacing units: A 480-acre horizontal spacing unit comprised of the NE/4 of Section 35 and the N/2 of Section 36 dedicated to Mewbourne Oil Company’s Swisher 35/36 State Com #711H well (API 30-015-53980) and Swisher 35/36 State Com #713H well (API 30-015-53978); and a 480-acre horizontal spacing unit comprised of the SE/4 of Section 35 and the S/2 of Section 36 dedicated to Mewbourne Oil Company’s Swisher 35/36 State Com #716H well (API 30-015-53979) and Swisher 35/36 State Com #718H well (API 30-015-53977). Also to be considered will be the cost of drilling and completing said wells, the allocation of these costs as well as the actual operating costs and charges for supervision, designation of Marathon as operator of the wells, and a 200% charge for risk involved in drilling said wells. Said area is located approximately 3.1 miles southwest of Loving, New Mexico.
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